Pennsylvania Power & Light (PPL) announced substantial rate hikes for residential electric service yesterday. The change has many Pocono residents concerned as record gas prices and inflation has already had a devastating effect on many households.
Currently, PPL’s rate is 8.941¢/kWh. On Jun. 1, 2022, that price will be 12.366¢/kWh, equating to a 38.3067% increase. The June increase follows a 26% increase that took effect on Dec. 1, 2021. Why is the default rate increasing? PPL updates the default rate twice a year based on competitive energy auctions. After completing their auctions, PPL states that they purchase power for consumers at the lowest rate available.
Miguel Velez, a Stroudsburg resident, negatively affected by the rate increase, says, “They’re the only supplier around here. What are we supposed to do? Switch to solar panels? Wind farms? Catch a lightning bolt? This is ridiculous. They might as well double it at this point.”
“People are struggling these days, especially now right after covid. These increases are unaffordable and unfair to the average working man. There’s already not enough income in the average family home for any bill increase. Things are already high enough.” Says A Mount Pocono resident who wishes only to go by Nick.
An email sent to PPL customers states, “At PPL Electric Utilities, we deliver your electricity, but we don’t own the power plants where it’s generated. You can shop for an electricity supplier that is right for you. If you don’t shop for electricity supply, we buy it for you and pass along the cost at no profit to us. That’s called the default rate. We just completed our auctions and we’re purchasing power for you at the lowest rate available. Inflation and global economic events are impacting all parts of the economy, including the cost of energy supply sources, such as natural gas. Those rising prices are reflected in the new default rate.”
PPL insists it cannot control the electricity supply prices and recognizes the new challenges that they present but offers the following resources and programs for customers looking to lessen the impact:
• Shop for a better deal
• Save energy
• Spread out your costs
• Spread out your costs
Anyone with questions about the rate increases is urged to call PPL at 1-800-342-5775.
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